US manufacturing grew at slower pace in October

The manufacturing sector in USA grew at a slower pace in October, as the accelerated production was able to offset the slowdown in new orders. The Purchase Managers’ Index (PMI) rose from 51.5 points in September to 51.9 points in October, while the median forecast of the economists was for value of 51.7 points.

The new orders are suppressed due to moderate consumer demand in the third quarter, weak global markets and limited investment by American businesses. Although the companies managed to shrink the bloated store inventory, which manufacturing is catching up only a small portion after the previous two months reported contraction.

The manufacturing and industrial activity are growing, but the prospects for big rebound are relatively low. Since the beginning of the year PMI index averaged at 51 points, while in 2015 the average value was 51.3 points.

The sub-index for supply management for new orders recorded a decline to 55.1 points in October from 52.1 points in September, but the measure of the overall production grows to 54.6 points against 52.8 points in September. The index for export orders remained almost unchanged, recording a slight increase from 52 to 52.5 points.